The US dollar continues to exhibit strength in trading as of last Friday. The monetary policy announcement from the Federal Reserve remains a significant pillar for the dollar’s dominance.<\/p>\n
As we are aware, the Fed has lowered interest rates by 25 basis points (0.25%) to a range of 4%-4.25%. The subsequent dot plot indicated that there would be two more rate cuts, anticipated in October and December. However, for the following year, the Fed forecasts only a single reduction. This has prompted a strengthening of the dollar.<\/p>\n
This sentiment will likely continue to influence market movements during trading on Monday (September 22, 2025).<\/p>\n
GOLD<\/strong> Market participants are currently reassessing the Fed’s decision to cut rates and are forecasting two additional cuts next year. The price of Gold is expected to rise further, as traders believe that if the labor market deteriorates further and inflation does not see a significant spike, there may be potential for the Fed to cut rates more than once next year.<\/p>\n This sentiment is expected to have an impact on market movements today.<\/p>\n OIL<\/strong> Concerns over increasing supply, particularly as OPEC+ continues to ramp up production, have cast a negative sentiment on Oil. Additionally, demand remains weak, suggesting that Oil prices may continue to face downward pressure.<\/p>\n EURUSD<\/strong> The high position prompted profit-taking, especially following a sharp decline in Germany’s producer price index (PPI) for August.<\/p>\n As Germany holds the title of the largest economy in Europe, a drop in PPI may reflect trends within the region. If PPI slows down in the future, inflation pressures (consumer price index\/CPI) could ease. This scenario may give the European Central Bank (ECB) some leeway to consider cutting interest rates.<\/p>\n Such sentiment may continue to pressure EURUSD in the European trading session.<\/p>\n GBPUSD<\/strong> The pair continued to decline following the Bank of England’s (BoE) decision to maintain interest rates at 4%. The weaker state of the UK economy has led the market to view the BoE as more likely to be aggressive, potentially cutting rates next year, thereby exerting pressure on GBPUSD.<\/p>\n USDJPY<\/strong> The fluctuations were in response to the Bank of Japan’s (BoJ) monetary policy announcement, which maintained a 0.5% interest rate, although 2 out of 9 members advocated for a hike. This divergence briefly caused USDJPY to drop before it recovered, a trend that has persisted today. This indicates that the US dollar continues to be supported by positive sentiment following the Fed’s monetary policy announcement.<\/p>\n Such sentiment is expected to influence USDJPY’s movements in the European trading session.<\/p>\n Nasdaq<\/strong> This development has reduced fears of a trade war between the two nations, leading to positive sentiment across equity indices, including Nasdaq. This sentiment is likely to affect Nasdaq’s movements during the European trading session.<\/p>\n The US dollar continues to exhibit strength in trading as of last Friday. The monetary policy announcement from the Federal Reserve remains a significant pillar for the dollar’s dominance. As we are aware, the Fed has lowered interest rates by 25 basis points (0.25%) to a range of 4%-4.25%. The subsequent dot plot indicated that […]<\/p>\n","protected":false},"author":4,"featured_media":21040,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5170,142],"tags":[5175,5174,5176,5178,5177,5168],"class_list":["post-88590","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-summary","category-news","tag-cls10","tag-eurusd","tag-gbpusd","tag-nq","tag-usdjpy","tag-xauusd"],"yoast_head":"\n
The price of Gold (XAUUSD) surged by over $40 or 400 pips last Friday, reaching $3,684.86 per troy ounce. Today, Gold has further ascended, surpassing $3,700 per troy ounce.<\/p>\n
OIL has been on a downward trend for three consecutive days, closing at $62.36 per barrel. Over these three days, the total decrease in Oil prices has been $2.17.<\/p>\n
EURUSD dipped by 388 points (38.8 pips) to 1.17447 in trading on Friday. This pair has recorded three consecutive days of decline after reaching a three-year high previously.<\/p>\n
GBPUSD fell nearly 800 points (80 pips) to 1.34682 in trading last Friday. It has recorded a decline over three consecutive days, totaling 1,712 points (171.2 pips).<\/p>\n
USDJPY exhibited volatility before closing on Friday at 147.960, showing little change compared to Thursday’s closing.<\/p>\n
The Nasdaq index surged, setting a new all-time high at 24,886 during trading last Friday. The index received additional positive sentiment following productive talks between US President Donald Trump and Chinese President Xi Jinping.<\/p>\n